Printer Friendly


 ROMULUS, Mich., Aug. 20 /PRNewswire/ -- Hayes Wheels International, Inc. (NYSE: HAY) today announced second quarter earnings above 1992 earnings for the same period, and on target with earlier estimates. Net income was up 8 percent for the quarter versus pro forma 1992 results, and net income before the cumulative effect of changes in accounting principles was 21 percent higher for the first six months compared to last year.
 For the second quarter ended July 31, 1993, net sales dropped 9 percent to $98.8 million from $108.4 million in last year's second quarter. Sales were down 33 percent in Europe due to the recession and currency devaluation. Sales in North America were down 2 percent for the period due to an extended model year change-over for the Chrysler Dakota truck, and higher than normal 1992 sales resulting from one-time production builds for General Motors in the steel wheels business. Net income rose to $5.6 million, or 32 cents per share compared to $1.9 million or 23 cents per share in the second quarter of fiscal 1992. Net income was also 8 percent above pro forma fiscal 1992 second quarter net income of 30 cents per share restated for the financial restructuring from the company's December 1992 initial public offering.
 For the six months ended July 31, 1993, sales were down 2 percent to $210.5 million from $215.5 million in the first half of fiscal 1992. Excluding one-time accounting charges, net income for the six months ended July 31, 1993, was $11.6 million, or 66 cents per share. This represented a 21 percent improvement over pro forma 1992. Net income in the prior year period was $3.0 million or 37 cents per share. On a pro forma basis, 1992 net income was $9.6 million or 55 cents per share.
 Including a first quarter charge of $24.6 million for the effects of a one-time change of accounting principles to reflect SFAS No. 106, SFAS No. 109, and SFAS No. 112, the company showed a net loss for the first half of 1993 of $13.0 million. Also included in the 1993 first half results were after tax ongoing costs for SFAS 106 of $1.9 million or $0.11 cents per share, versus $0.3 million or $0.02 cents per share in pro forma 1992.
 Ron Cucuz, president and chief executive officer, stated, "Earnings for the second quarter were right on target for significant earnings growth for the year. Our European business showed operating profit equal to 1992, despite the effects of currency devaluation against the dollar and a deepening recession in the region. In North America, the aluminum wheel business showed both sales and earnings growth. In addition, the fabricated wheel business delivered improved operating profits on the strength of productivity improvements and cost reductions."
 Cucuz added, "Overall, our second half sales look stronger than last year. Industry observers are projecting North American third quarter production to be about 15 percent higher than last year. Although we continue to foresee weak sales in Europe, the profitability of our European aluminum wheel operations will remain strong through 1993. We will also see the ramp-up of important new models like the aluminum wheels for the GMC and Chevrolet S-Trucks, and the PJ wheel for Nissan. To meet this demand, our new cast aluminum wheel plant in Gainesville, Ga., will begin shipping in the third quarter. We will also begin shipment of two new steel wheels for the Buick Regal and a fabricated aluminum spare for the Ford Mustang from other facilities."
 Hayes Wheels International, Inc. is the world leader in the design, engineering and manufacture of aluminum and steel wheels for the automotive market in North America, Europe and Asia.
 Second Quarter Results
 Quarter Ended July 31
 1993 1992
 ($ Millions)
 Sales $98.8 $108.4
 Earnings from operations $12.4 $11.6
 Net income (loss) $5.6 $1.9
 Earnings (loss) per share data: $0.32 $0.23
 Average common shares 17,574,000 8,144,000
 Pro Forma:
 Earnings per share $0.32 $0.30
 Average common shares 17,574,000 17,574,000
 Six Months Ended July 31
 1993 1992
 ($ Millions)
 Sales $210.5 $215.5
 Earnings from operations $26.2 $22.1
 Income (loss) before cumulative
 effect of accounting changes $11.6 $3.0
 Cumulative effect of
 accounting changes ($24.6) ---
 Net income (loss) ($13.0) $3.0
 Earnings (loss) per share data:
 Earnings (loss) before cumulative
 effect of accounting changes $0.66 $0.37
 Cumulative effect of
 accounting changes ($1.40) ---
 Earnings (loss) per share ($0.74) $0.37
 Pro Forma earnings/(loss) per share: $0.66 $0.55
 -0- 8/20/93
 /CONTACT: John A. Salvette of Hayes Wheels International, 313-942-8689/

CO: Hayes Wheels International, Inc. ST: Michigan IN: AUT SU: ERN

ML-JG -- DE001 -- 4578 08/20/93 07:17 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Aug 20, 1993

Terms of use | Copyright © 2018 Farlex, Inc. | Feedback | For webmasters